Utility industry needs a variety of investments - Will Coal Investments Become Stranded Assets?

The utility industry is changing. Anticipating and embracing that change is a key strategy for Xcel Energy. In this complex energy evolution, the dialogue needs to extend beyond just coal. Investments in the grid, energy infrastructure and technology are needed to support the integration of new energy sources. The recently proposed electric rate case settlement agreement allows Xcel Energy to begin recouping investments made in its state-approved Clean Air-Clean Jobs Act Plan. The $1 billion of investments will result in the retirement and replacement of older coal-fired plants and provide emission controls on remaining plants. By 2020, these efforts will result in an 80 percent reduction in sulfur dioxide, nitrogen oxides and mercury emissions. It will enable the company to meet the EPA's overall targeted emission reduction levels 10 years early. The plan also contributes to the company's 35 percent planned reduction in carbon dioxide emissions in Colorado (compared to 2005 levels), while modernizing our power plants for the future. Xcel Energy supports renewable energy and the growing customer demand for it. This means investing in the most cost-effective renewable resources to keep energy prices affordable for everyone, without sacrificing reliability. Since 2010, the amount of solar on our Colorado system increased by more than 200 percent and wind has grown by more than 100 percent. Over 90 percent of the solar that exists in Colorado is on the Xcel Energy system. Our company has been the No. 1 provider of wind in the country for 10 consecutive years. Renewable energy sources are extremely valuable, yet intermittent. Without massive storage facilities, wind and solar resources need to be balanced with other generation sources so that power is there when our customers need it. This takes thought, sophisticated planning, and time to ensure reliability and affordable costs for our customers. David Eves is president and CEO of Public Service Company of Colorado, an Xcel Energy Company.